[Congressional Record (Bound Edition), Volume 149 (2003), Part 8]
[House]
[Pages 10557-10558]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1945

       THE HIGHER COST OF PRESCRIPTION DRUGS IN THE UNITED STATES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Minnesota (Mr. Gutknecht) is recognized for 5 minutes.
  Mr. GUTKNECHT. Madam Speaker, I rise tonight to speak about the issue 
of the higher cost of prescription drugs in the United States.
  The gentlewoman who just preceded me who was talking about tax 
relief, I think I agree with some of the points she raised. When we 
talk about tax cuts, what we are really talking about is allowing 
people to keep more of what they earn. In soft economic times, I happen 
to believe it makes sense to allow people to keep more of what they 
earn.
  As you see on this chart, which you can find on my Web site, we start 
by saying if we want to allow Americans to keep and spend over $600 
billion during the next 10 years, here is a good place to start. It has 
got a picture of prescription drug capsules here.
  The next page says, ``That's right. According to the CBO,'' that is 
the Congressional Budget Office, ``American seniors will spend over 
$1.8 trillion over the next 10 years on prescription drugs.''
  This is a conservative estimate. We are going to show you a chart in 
a minute that says that we could save 35 percent by allowing free 
markets to work. Thirty-five percent of $1.8 trillion translates to 
$630 billion.
  Let me show you this chart. This is not my chart. I have a number of 
independent experts around the country that have been working on this a 
lot longer than I have, they are a lot smarter than I am, but they have 
actually done some of the comparisons in terms of what we as Americans 
pay for prescription drugs compared to the rest of the world.
  This is a chart by a group called the Life Extension Foundation out 
of Florida. They have been studying this for more than a decade. Here 
are some of the figures in terms of the prices we pay versus what 
Canadian consumers pay and what European consumers pay for the same 
drugs.
  Let us look at the top right here. We have Augmentin. In the United 
States, a 30-day supply sells for about $55.50. That same drug in 
Canada, made in the same plant under the same FDA approval, sells for 
$12. In Europe it sells for $8.75.
  Cipro. We learned a lot about Cipro last year when we had anthrax 
here in the Capitol building. It is made by a German drug company 
called Bayer; we usually call it Bayer, Bayer aspirin. Cipro in the 
United States sells for $87.99 for a 30-day supply. That same drug in 
Canada sells for $53.55. Over in Germany it sells for $40.75.
  My father takes a drug called Coumadin. Here in the United States the 
average price for a 30-day supply of Coumadin is $64.88. That same 
drug, again made under the same FDA approval in the same FDA-approved 
plant, sells in Canada for $24.94. Over in Europe the average price is 
$15.80.
  Madam Speaker, as you look at this list, it just becomes very, very 
aggravating, when you see how much we pay. Glucophage, an amazing drug 
we sell here in the United States, the average price, according to the 
Life Extension Foundation, the average price in the United States, the 
average price, is $124 here. The average price in Canada for the same 
drug, same dosage, is $26.47. Over in Europe the same drug sells for 
$22. Glucophage.
  A couple of weeks ago I and one of my staffers were in Germany. We 
had

[[Page 10558]]

the opportunity to actually do some shopping of our own. We bought a 
drug called Tamoxifen. It is amazing in terms of being one of the most 
amazing drugs we have developed in the United States.
  Let me just talk about the drug itself, because it was developed 
largely with American taxpayers' money. Tamoxifen is the most effective 
drug against women's breast cancer that we have developed, but the 
American taxpayers paid for most of the research costs.
  This drug in the United States at a pharmacy here in Washington, D.C. 
for a 3-month supply just like this sells for about $360. In Munich, 
Germany, we bought it a week and a half ago for $59.05, the same drug.
  Now, some people would say shame on the pharmaceutical industry; but 
I have to say shame on us, because we have allowed this environment to 
be created. It is not shame on them, because they are only exploiting a 
market opportunity that we have allowed them. The answer is open 
markets.
  Many years ago President Ronald Reagan said that markets are more 
powerful than armies.
  My time has expired, but I will be back in coming nights to talk 
about this issue and how Members can help solve this problem.

                          ____________________